Android-spyware bespioneert locatie slachtoffers
May 20th, 2012
Nieuwe malware voor Android-smartphones en tablets is speciaal ontwikkeld om de locatie van slachtoffers naar de malwaremakers door te sturen.Categories: security
Nederlandse cybercrimineel achter de tralies
May 20th, 2012
De meest gezochte internetoplichter in Nederland zit achter de tralies.Categories: security
HULK DoS-tool verplettert webservers
May 20th, 2012
Een zelfbenoemde 'Nerd' en beveiligingsonderzoeker heeft een DoS-tool ontwikkeld om webservers mee plat te leggen.Categories: security
Windows-worm wijzigt Hyves- en Facebook-berichten
May 20th, 2012
Onderzoekers hebben een nieuwe Windows-worm ontdekt die zich via USB-sticks verspreidt, Facebook-berichten aanpast, wachtwoorden steelt en al aanwezige concurrentie infecteert.Categories: security
SecureZIP beveiligt data op iPhone en Android
May 20th, 2012
Een gratis programma van PKWARE, het bedrijf dat door de bedenker van de ZIP-standaard werd opgericht, moet gegevens op iPhone en Android-smartphones beveiligen.Categories: security
"Cyberaanval brengt ons terug naar middeleeuwen"
May 20th, 2012
Als organisaties de kritieke infrastructuur niet beten weten te beschermen, kan een cyberaanval ervoor zorgen dat we in het 'pre-elektronische tijdperk' belanden.Categories: security
James McNamara Named Managing Executive of SEC’s Division of Trading and Markets
May 18th, 2012
FOR IMMEDIATE RELEASE
2012-98
Washington, D.C., May 18, 2012 — The Securities and Exchange Commission today announced that James P. McNamara has been named to the newly-created position of Managing Executive of the SEC’s Division of Trading and Markets.
Mr. McNamara is currently an Assistant Director in the SEC’s Office of Financial Management. In his new position, Mr. McNamara will be responsible for the administrative and operational aspects of the Division of Trading and Markets, including human resources, budget, information technology, and strategic planning.
“The breadth of Jamey’s management experience, including his expertise with respect to managing and improving business processes in the financial, human resources, and IT areas, will be invaluable to the Division,” said Robert Cook, Director of the SEC’s Division of Trading and Markets.
Mr. McNamara previously worked in the Division of Trading and Markets from 2003 to 2005, when he served as a Branch Chief for Administration. He then moved to the Office of Financial Management and became a Branch Chief for Budget Formulation and Performance Management until 2006, when he left to work in the private sector. Mr. McNamara returned to the SEC’s Office of Financial Management in 2010, serving as the agency’s Budget Officer for a year before becoming an Assistant Director.
“I am honored to have been selected for this position. I look forward to returning to the Division and working with Robert and the talented staff in Trading and Markets,” Mr. McNamara said.
Mr. McNamara began his federal service at the U.S. Department of Justice, where he worked for 10 years in positions of increasing responsibility in human resources management and budget formulation in the agency’s largest litigating division.
Mr. McNamara received his bachelor’s degree in history from Brown University.
Categories: financialaudit, SEC, toezicht
"Meer banken moeten pinnen buiten Europa blokkeren"
May 18th, 2012
De afgelopen jaren is de fraude in het elektronische betalingsverkeer sterk toegenomen, zowel overheid als bedrijfsleven moeten dan ook meer actie tegen skimmers ondernemen.Categories: security
Maker Call of Duty-malware krijgt 18 maanden cel
May 18th, 2012
Een 20-jarige Brit die een patch voor het populaire computerspel Call of Duty verspreidde dat in werkelijkheid een Trojaans paard was, is veroordeeld tot een gevangenisstraf van 18 maanden.Categories: security
A Strong Ethical Compass: An Essential Trait for Internal Auditors
May 18th, 2012
Richard Chambers, CEO and President of the Global IIA addresses the importance of a strong ethical behavior for internal audit in his latest blog. As a key note speaker at the European Conference in September 2012 in Amsterdam, Richard will expand on this topic. Download the conference program View the blogCategories: IIA, operationalaudit
Mozilla worstelt met Apple’s eisen voor Firefox
May 18th, 2012
Als Apple's nieuwe besturingssysteem Mountain Lion vandaag zou uitkomen, zouden Firefox-gebruikers een andere browser moeten zoeken.Categories: security
Download the final program of the 2012 European IIA Conference (update)
May 18th, 2012
The 2012 European (ECIIA) Conference will be held in Amsterdam from 12-14 September. The final program of the ECIIA Conference, including key note speakers and parallel tracks is available. Download the program Register before June 1, 2012 and take advantage of the € 200 early bird discountCategories: IIA, operationalaudit
Microsoft vertaalt security bulletins voor machines
May 18th, 2012
Microsoft biedt de maandelijkse security bulletins tegenwoordig ook in een voor machines leesbaar formaat aan, wat het kopiëren en plakken van de informatie door bedrijven moet voorkomen.Categories: security
Slordige webmasters laten duizenden blogs hacken
May 18th, 2012
De afgelopen weken zijn duizenden Wordpress blogs en Joomla-sites gehackt en gebruikt voor het hosten van dubieuze webwinkels.Categories: security
Beveiligingscamera’s hacken met Metasploit
May 18th, 2012
Er is een nieuwe module aan de populaire hackertoolkit Metasploit toegevoegd, waarmee de veiligheid van beveiligingscamera's is te testen.Categories: security
Nederlandse Firefox-gebruiker zeer privacybewust
May 18th, 2012
Nederlandse Firefox-gebruikers vinden hun privacy op het web erg belangrijk, zo blijkt uit cijfers van Mozilla.Categories: security
Twitter stopt volgen van internetgebruikers
May 18th, 2012
Twitter gaat internetgebruikers niet meer volgen als ze dat niet willen, zo heeft de microbloggingdienst aangekondigd.Categories: security
Microsoft verplicht Windows Phone 7.5 update
May 18th, 2012
Microsoft verplicht gebruikers van een Windows Phone om naar versie 7.5 te upgraden, anders kunnen ze geen apps van de officiele marktplaats meer kopen, downloaden of updaten.Categories: security
[Column]De Security Bubble
May 18th, 2012
Credit rating agencies zijn net mensen.Categories: security
New COSO Internal Control-Integrated Framework to be released Q1 2013
May 18th, 2012
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has announced that the updated Internal Control-Integrated Framework (ICIF or Framework) is expected to be released during the first quarter of 2013. The final Framework is expected to enable organizations to adapt to increasing complexity and pace of change; to mitigate risks to the achievement of objectives; and to provide reliable information to support sound decision making. In addition to updating the Framework, ...Categories: IIA, operationalaudit
Bijeenkomst ESAA met IIA Young Professionals (update)
May 18th, 2012
Oordeels(ver)vorming: auditor ken uzelf! De invloed van psychologische aspecten op de oordeelsvorming van de auditor (2 PE) De opleiding Internal Auditing & Advisory en IIA Young Professionals organiseren een PE-bijeenkomst over bovengenoemd thema op maandag 25 juni 2012 (17.00 - 20.00 uur), locatie Erasmus Universiteit Rotterdam. Onderzoek wijst uit dat maar liefst 90% van het menselijk doen en laten wordt bepaald door het onderbewustzijn. Wat voor een effect heeft dat op onze ...Categories: IIA, operationalaudit
Russen ‘kraken’ iPhone via Apple iCloud
May 18th, 2012
Forensisch onderzoekers die de iPhone van een verdachte willen analyseren hebben geen fysieke toegang tot het toestel meer nodig.Categories: security
Nieuw op Auditchannel.tv
May 18th, 2012
Paul Sobel, bestuurslid van IIA Global, vraagt zich af of internal audit de eigenaar moet zijn van Enterprise Risk Management. Klik om de video te bekijken.Categories: IIA, operationalaudit
Internal Audit verdient voetstuk
May 18th, 2012
In de rubriek opinie van accountant.nl betoogt Robert Bogtstra dat frequent gerenommeerde organisaties in problemen komen doordat ze zich niet bewust waren van de risico's die ze liepen of onvoldoende konden inspelen op (verandering van) deze risico's. Op zich heel begrijpelijk in een zeer volatiele en extreem snel veranderende wereld. Als het misgaat blijkt achteraf dat zowel commissarissen als accountants niet in staat waren om krachtig en tijdig de vinger op problemen te leggen Internal ...Categories: IIA, operationalaudit
GRC in de bouw aan de maat?
May 18th, 2012
NBA heeft op 16 mei 2012 het discussierapport GRC in de bouw aan de maat? gepubliceerd. Vijftien ondernemingen werkten mee aan dit onderzoek, waaronder een groot aantal beursgenoteerde bedrijven. Het rapport beschrijft de resultaten van het onderzoek naar ontwikkelingen op het gebied van governance, risicomanagement en compliance (GRC) bij grote bouwondernemingen en aanverwante industrie in Nederland. Met behulp van een self-assessment vragenlijst zijn de ondernemingen gevraagd hun huidige en ...Categories: IIA, operationalaudit
EFRAG PRC Conference Call on 23 May 2012
May 18th, 2012
EFRAG announces that the EFRAG Planning and Resource Committee will hold a public conference call on Wednesday, 23 May 2012 from 16:00 - 17h30 CEST.Categories: efrag, financialaudit
James Burns Named Deputy Director in SEC’s Division of Trading and Markets
May 17th, 2012
FOR IMMEDIATE RELEASE
2012-96
Washington, D.C., May 17, 2012 – The Securities and Exchange Commission today announced that James R. Burns will become a Deputy Director in the Division of Trading and Markets.
Mr. Burns will oversee several of the Division’s core regulatory functions, including market oversight and operations, derivatives policy and trading practices, and chief counsel and enforcement liaison functions. He also will contribute to the Division’s ongoing implementation of key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. In addition, Mr. Burns will assist with the overall management of the Division, working closely with the Division’s Director Robert Cook and other Deputy Director John Ramsay.
Mr. Burns has been a member of Chairman Mary Schapiro’s staff since March 2010, most recently serving as the agency’s Deputy Chief of Staff. Mr. Burns advised the Chairman on the development and execution of the agency’s rulemaking and policy agenda as well as other key agency initiatives. He also served as counsel to Chairman Schapiro on issues involving the Division of Trading and Markets, including the agency’s analysis and response to the Flash Crash on May 6, 2010, and numerous other market structure and Dodd-Frank related rulemakings, studies, and programs.
“Jim has played an instrumental role in the implementation of the financial reform legislation and navigating through complex market structure issues,” said Chairman Schapiro. “In his new position, he will continue to help put in place the new regulatory regime governing complex derivatives as well as critical market structure improvements.”
Mr. Cook said, “At a time when the Division is taking on unprecedented challenges and new responsibilities, I am delighted that we will have the benefit of Jim’s leadership, initiative, and experience. Investors will be well-served by Jim’s dedication to the Commission’s mission and his wide-ranging knowledge of the diverse markets and intermediaries we regulate.”
Mr. Burns said, “I am honored to take on this new role. I have deep respect for Robert and the Division’s staff, who are carrying out tremendous responsibilities on behalf of our markets and investors, and I look forward to working with them to help advance the agency’s mission.”
Mr. Burns is expected to begin his new role in the Division in late May. He fills the Deputy Director position that was vacated by James Brigagliano when he left the agency for the private sector.
Prior to joining the Chairman’s staff, Mr. Burns was a counsel to Commissioner Kathleen Casey, advising her chiefly on investment management and enforcement matters. Before joining the SEC in 2008, Mr. Burns was a securities lawyer in private practice who focused on investment management and broker-dealer regulatory and enforcement matters. He previously served as a law clerk to now-chief Judge William B. Traxler on the U.S. Court of Appeals for the Fourth Circuit, and also worked at Oriel College, Oxford University.
Mr. Burns received his JD, cum laude, from Georgetown University Law Center. He holds masters and doctoral degrees from Oxford University, and graduated with an AB, magna cum laude, from Harvard College.
# # #
Categories: financialaudit, SEC, toezicht
Erica Williams Named SEC’s Deputy Chief of Staff
May 17th, 2012
FOR IMMEDIATE RELEASE
2012-97
Washington, D.C., May 17, 2012 – The Securities and Exchange Commission today announced that Erica Williams will become the agency’s Deputy Chief of Staff.
Ms. Williams has been a member of Chairman Schapiro’s staff since February 2011, primarily focusing on enforcement and regulatory issues. Prior to that, Ms. Williams served as assistant chief litigation counsel in the Enforcement Division’s trial unit for seven years, leading trial teams in a host of successful prosecutions.
“Erica is well-steeped in the securities laws and has a true grasp of the intricacies of the agency,” said Chairman Schapiro. “She also fully embraces the agency’s mission and I am thrilled that she is willing to take on this new responsibility.”
Ms. Williams said, “This is an incredible opportunity that allows me to continue protecting investors and ensuring our markets operate fairly and efficiently.”
Ms. Williams replaces James R. Burns, who will become the Deputy Director of the Division of Trading and Markets.
In 2009, Ms. Williams was selected by U.S. Senator Ted Kaufman as Federal Employee of the Week. Before coming to the SEC, Ms. Williams was a commercial litigator in private practice.
Ms. Williams received her law degree from the University of Virginia School of Law. She holds a bachelor’s degree from the University of Virginia.
# # #
Categories: financialaudit, SEC, toezicht
SEC Charges Seattle-Based Fund Manager for Secretly Diverting Client Funds to His Own Start-Up Companies
May 17th, 2012
FOR IMMEDIATE RELEASE
2012-95
Washington, D.C., May 17, 2012 – The Securities and Exchange Commission today charged a Seattle-based investment adviser and his firm with defrauding clients by secretly investing their money in two risky start-up companies he co-founded.
The SEC alleges that Mark Spangler, a former chairman of the National Association of Personal Financial Advisors, funneled approximately $47.7 million of client money into these private ventures despite representing that he would invest primarily in publicly-traded securities. Spangler served as chairman and CEO of one of the companies, which is now bankrupt. Such risky investments were inconsistent with the investment strategies that Spangler promised his clients and contrary to their investment objectives.
The U.S. Attorney’s Office for the Western District of Washington today announced parallel criminal charges against Spangler.
“Spangler assured his clients he was investing them in publicly-traded equities and bonds, not risky start-ups in which he had a personal interest,” said Marc Fagel, Director of the SEC’s San Francisco Regional Office. “For an investment adviser to put his self-interest above the best interests of his clients is a disturbing abuse of trust.”
According to the SEC’s complaint filed in federal court in Seattle, Spangler raised more than $56 million from his clients since 1998 for several private investment funds he managed. Beginning around 2003, without notifying investors in the funds, Spangler and his advisory firm The Spangler Group (TSG) began diverting the majority of client money into two private technology companies he created. One of the companies received nearly $42 million from the funds before shutting down operations. It had long been a cash-poor company with a history of net losses, generating less than $100,000 in revenue during its 11-year history. Yet Spangler continued to treat the funds as the company’s piggy bank.
The SEC alleges that Spangler also did not tell investors that TSG collected fees for “financial and operational support” from these companies, which were essentially paying these fees with the client money they had received from the funds. Therefore, Spangler and his firm secretly reaped $830,000 from the companies in addition to any management fees that TSG received from clients.
According to the SEC’s complaint, Spangler concealed his diversion of client funds for years. He disclosed it only after he placed TSG and the funds he managed into state court receivership in 2011.
The SEC’s complaint charges Spangler and TSG with violating, among other things, the antifraud provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. The complaint seeks injunctive relief, disgorgement with prejudgment interest, and financial penalties.
The SEC’s investigation was conducted by Karen Kreuzkamp and Robert S. Leach of the San Francisco Regional Office with assistance from Michael Tomars, Peter Bloom, and Christine Pelham of the investment adviser/investment company examination program. Robert L. Tashjian will lead the SEC’s litigation.
The SEC thanks the U.S. Attorney’s Office for the Western District of Washington, Federal Bureau of Investigation, and Internal Revenue Service for their assistance in this matter.
# # #
Categories: financialaudit, SEC, toezicht
RTL laat expert 25 webwinkels hacken
May 17th, 2012
Televisiezender RTL heeft een beveiligingsexpert gevraagd om bij 25 webwinkels in te breken, wat onder andere een database met de gegevens van 95.000 klanten opleverde.Categories: security
SEC Charges New Jersey Man in Real Estate Investment Scam
May 17th, 2012
FOR IMMEDIATE RELEASE
2012-94
Washington, D.C., May 17, 2012 – The Securities and Exchange Commission today charged a New Jersey man with operating a Ponzi-like scheme involving a series of investment vehicles formed for the purported purpose of purchasing and managing rental apartment buildings in New Jersey and Pennsylvania.
The SEC alleges that David M. Connolly induced investors to buy shares in real estate investment vehicles he created through his firm Connolly Properties Inc. He promised investors monthly dividends based on cash-flow profits from rental income at the apartment buildings as well as the growth of their principal from the appreciation of the property. However, the real estate investments did not produce the projected dividends, and Connolly instead made Ponzi-like dividend payments to earlier investors using money from new investors. Connolly, who lives in Watchung, N.J., also siphoned off at least $2 million in investor funds for his personal use.
“David Connolly presented himself to investors as a successful real estate investment manager with a track record of paying consistent, high returns,” said George S. Canellos, Director of the SEC’s New York Regional Office. “In truth, Connolly’s operation was essentially a shell game intended to raise additional funds from new or existing investors in order to perpetuate his fraudulent scheme.”
The U.S. Attorney’s Office for the District of New Jersey, which conducted a parallel investigation of the matter, today announced that Connolly was indicted on one count of securities fraud among other criminal charges.
According to the SEC’s complaint filed in federal court in New Jersey, none of Connolly’s securities offerings in the investment vehicles were registered with the SEC as required under the federal securities laws. He began offering the investments in 1996 and ultimately raised in excess of $50 million from more than 200 investors in more than 25 investment vehicles. However, beginning in at least 2006, Connolly misrepresented to investors that their funds would be used exclusively for the property related to the particular vehicle in which they invested. Connolly instead commingled the funds in bank accounts that he alone controlled and used for a variety of purposes that weren’t disclosed to investors, including $2 million in payments he made to himself that vastly exceeded any dividends to which he would be entitled through his ownership stake. Between 2007 and 2010, Connolly also wrote checks to “cash” in excess of $2.5 million. Even after Connolly stopped making dividend payments to investors in April 2009, he still continued to pay himself dividends as well as a $250,000 “salary” out of investor funds.
The SEC alleges that Connolly lacked sufficient revenues from rental income at the apartment buildings, so he continued to raise millions of dollars for new investment vehicles. He used the funds to pay purported monthly cash-flow dividends in excess of 10 percent to investors in older investment vehicles. Connolly refinanced properties and improperly used the cash proceeds to continue the scheme, which ultimately collapsed in 2009 when new investor funds dried up and rental income was insufficient to support payments on the mortgages. The properties owned by the investment vehicles were forced into foreclosure, wiping out the equity of the investors.
The SEC’s complaint charges Connolly with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC’s complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties.
The SEC’s investigation was conducted by Justin Smith and William Edwards in the New York Regional Office. Jack Kaufman will lead the litigation.
The SEC thanks the U.S. Attorney’s Office for the District of New Jersey, the Federal Bureau of Investigation, and the Internal Revenue Service for their assistance in this matter.
# # #
Categories: financialaudit, SEC, toezicht
Digitale bankrover vermomt zich als Google Chrome
May 17th, 2012
Een Trojaans paard dat geld van online bankrekeningen steelt vermomt zich als Google Chrome.Categories: security
Jaar gevangenisstraf wegens hacken Facebook-account
May 17th, 2012
Een 21-jarige Brit is tot 12 maanden gevangenisstraf veroordeeld wegens het hacken van een Facebook-account.Categories: security
"SSL-certificaten niet meer van deze tijd"
May 17th, 2012
SSL-certificaten zijn in de huidige vorm en opzet niet meer van deze tijd, aldus SSL-expert en beveiligingsonderzoeker Moxie Marlinspike.Categories: security
IASB concludes the 2009-2011 Annual Improvements cycle
May 17th, 2012
Categories: financialaudit, IFRS.org
Man opgepakt na stelen naaktfoto’s van vrouw
May 17th, 2012
In de Verenigde Staten is een 28-jarige man opgepakt na het hacken van de computer en sociale netwerkprofielen van twee voormalige kennissen.Categories: security
Vrouw krijgt 5 jaar cel wegens phishingaanvallen
May 17th, 2012
Een 26-jarige vrouw is in de Verenigde Staten tot een gevangenisstraf van vijf jaar veroordeeld wegens het coördineren van phishingaanvallen.Categories: security
Mozilla: Microsoft speelt vals met IE op Windows RT
May 17th, 2012
Mozilla beschuldigt Microsoft van valsspelen door bepaalde programmatuur niet voor andere browserleveranciers op Windows RT beschikbaar te maken.Categories: security
Grootschalige DDoS-aanval legt Pirate Bay plat
May 17th, 2012
Torrentsite The Pirate Bay was gisterenavond door een grootschalige DDoS-aanval enkele tijd onbereikbaar.Categories: security
Flashback toont 10 miljoen advertenties op besmette Macs
May 17th, 2012
De criminelen achter het Flashback-botnet dat zo'n 700.000 Mac-computers wist te infecteren, hadden 11.000 euro met hun creatie kunnen verdienen, als ze waren uitbetaald.Categories: security
Shedding Light on Security Incidents Using Network Flows
May 17th, 2012
Categories: Incident Handling,Logging Technology and Techniques,Network Devices
Paper Added: May 16, 2012
Risk Assessment of Social Media
May 17th, 2012
Categories: Digital Privacy,Risk Management
Paper Added: May 16, 2012
SEC Charges U.S. Perpetrators in $35 Million International Boiler Room Scheme
May 16th, 2012
FOR IMMEDIATE RELEASE
2012-93
Washington, D.C., May 16, 2012 — The Securities and Exchange Commission today charged a Hawaii resident and two firms he used to orchestrate a scheme in which he covertly founded small companies, installed management, and recruited overseas boiler rooms that pressured investors into buying their stock while he pocketed more than $2 million in consulting fees from proceeds of the fraudulent stock sales.
The SEC alleges that Nicholas Louis Geranio worked behind the scenes to create eight U.S.-based companies used to raise money through the sale of Regulation S stock, which is exempt from SEC registration under the securities laws because it is offered solely to investors located outside the United States. Geranio handpicked the management for the companies, primarily Keith Michael Field of Sherman Oaks, Calif., who served as an officer, director, or investor relations representative for each company and also is charged in the SEC’s complaint. Geranio then set up consulting arrangements through his firms — The Good One Inc. and Kaleidoscope Real Estate Inc. — so he could instruct management on how to run the companies and raise money offshore. Geranio extracted consulting fees from the companies, which generally had few or no employees, little or no office space, and no sales or customers.
The SEC alleges that Field drafted misleading business plans, marketing materials, and website information about the companies that were provided to investors as part of fraudulent solicitation efforts by teams of telemarketers operating in boiler rooms that Geranio recruited primarily in Spain. The boiler rooms used high-pressure sales tactics and false statements about the companies to raise more than $35 million from investors. Meanwhile, Geranio instructed Field and others to buy and sell shares in some of the companies to create an illusion of trading activity and manipulate upwards the price of the publicly-traded stock.
“Geranio covertly set up companies and manipulated the market for their stock to profit from aggressive offshore boiler room activity,” said Stephen L. Cohen, Associate Director in the SEC’s Division of Enforcement. “Geranio pulled the strings while Field scripted the show for the boiler rooms to bring a payday to everyone but the investors.”
According to the SEC’s complaint filed in the U.S. District Court for the Central District of California, Geranio was the subject of a previous SEC enforcement action in 2000. In his latest misconduct, he concealed his role from investors and the public at all times by acting through The Good One and Kaleidoscope. The scheme lasted from April 2007 to September 2009. Geranio began by locating and acquiring shell companies to create the issuers used in the scheme: Blu Vu Deep Oil & Gas Exploration Inc., Green Energy Live Inc., Microresearch Corp., Mundus Group Inc., Power Nanotech Inc., Spectrum Acquisition Holdings Inc., United States Oil & Gas Corp., and Wyncrest Group Inc. Geranio then appointed management for these companies, in some cases turning to business associates, friends, or others. For example, the former CEO of Blu Vu was someone Geranio met while kite surfing in Malibu.
According to the SEC’s complaint, Geranio worked behind the scenes to keep the companies’ publicly-traded shares trading at prices conducive to the boiler room sales. He did this by directing Field, personal friends, and others to open accounts and buy or sell shares in at least five of the companies as part of matched orders and manipulative trades that created the false impression of active trading and market value in these stocks. The manipulative trades allowed the boiler rooms to sell the Regulation S shares to overseas investors at higher prices.
The SEC alleges that boiler room representatives recruited by Geranio induced investors by using aggressive techniques consistent with boiler room activity. For instance, they promised immediate and substantial investment returns, convinced investors that they needed to purchase the shares immediately or miss the grand opportunity altogether, and threatened legal action if an investor did not agree to purchase shares that the representatives believed the investor had already agreed to purchase. The boiler rooms also used “advance fee” solicitations, telling investors that only if they purchased shares in one of these companies would the boiler room agree to sell their other shares. Many of the investors were elderly and living in the United Kingdom.
According to the SEC’s complaint, investors were directed to pay for their Regulation S stock by sending money to U.S.-based escrow agents. As arranged by Geranio, the escrow agents paid 60 to 75 percent of the approximately $35 million raised from investors to the boiler rooms as their sales markups, kept 2.5 percent as their own fee, and paid the remaining proceeds back to the companies that Geranio created. The companies (or in some cases the escrow agents) then funneled approximately $2.135 million of the proceeds back to Geranio through The Good One and Kaleidoscope in the form of consulting fees, and paid Field approximately $279,000.
The SEC alleges that Geranio also assisted in diverting $240,000 in investor funds toward an undisclosed down payment on a property to start a Hawaiian wedding planning company.
The SEC’s complaint alleges that Geranio, Field, The Good One and Kaleidoscope violated Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder. The complaint alleges that Field also violated Section 17(a)(2) of the Securities Act and aided and abetted the companies’ violations of Section 10(b) of the Exchange Act and Rule 10b-5(b) thereunder, and Geranio is liable as a control person of The Good One and Kaleidoscope under Exchange Act Section 20(a). The SEC is seeking financial penalties, disgorgement of ill-gotten gains plus prejudgment interest, penny stock bars, and permanent injunctions against all of the defendants, as well as officer and director bars against Geranio and Field. The complaint seeks disgorgement and prejudgment interest against relief defendant BWRE Hawaii LLC based on its alleged receipt of investor funds.
The SEC's investigation, which is continuing, has been conducted by Ricky Sachar, Carolyn Kurr, and Wendy Kong under the supervision of Josh Felker with assistance from Jim Daly in the Office of International Affairs. Richard Simpson will lead the litigation. The SEC acknowledges the assistance of the City of London Police, Macedonian Securities and Exchange Commission, Macedonian Public Prosecutor, Lithuanian Securities Commission, Australian Securities and Investments Commission, Comision Nacional del Mercado de Valores (Spain), and Financial Market Supervisory Authority (Switzerland).
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More information about boiler room schemes: http://www.sec.gov/investor/pubs/coldcall.htm and http://www.sec.gov/investor/pubs/worthless.htm
SEC PAUSE list of unregistered soliciting entities that have been the subject of investor complaints: http://www.sec.gov/investor/oiepauselist.htm
Categories: financialaudit, SEC, toezicht
Finse WiFi-eigenaar niet aansprakelijk voor illegale downloads
May 16th, 2012
Een Finse rechter heeft bepaald dat eigenaren van een open WiFi-netwerk niet verantwoordelijk zijn voor illegaal materiaal dat via het access point wordt gedownload.Categories: security
Complete programma IIA Congres Amsterdam 12-14 september bekend
May 16th, 2012
De brochure van het complete programma van het ECIIA Europese congres dat in Amsterdam gehouden wordt van 12-14 september is beschikbaar. Inclusief alle (keynote) sprekers en parallelsessies. U kunt de brochure hier downloaden als PDF . Hebt u zich al aangemeld voor het congres? Tot 1 juni ontvangt u vroegboekkorting! www.iiacongres.nlCategories: IIA, operationalaudit
Wikipedia waarschuwt voor advertentie-malware
May 16th, 2012
Wikipedia waarschuwt bezoekers dat als ze advertenties op de populaire gratis encyclopedie te zien krijgen, hun computer met malware is besmet.Categories: security
NBA: Implementatie risicomanagement en compliance in bouw onvoldoende
May 16th, 2012
Governance, Risicomanagement en Compliance (GRC) is nog onvoldoende geïmplementeerd bij Nederlandse bouwondernemingen. Dat is de conclusie van het deze week verschenen NBA-rapport 'GRC in de bouw aan de maat?'.Categories: deaccountant, financialaudit
KPMG: "Investeren in groen leidt tot minder ziekteverzuim"
May 16th, 2012
Investeringen in groen leiden tot forse besparingen op de zorgkosten en het ziekteverzuim. Dit blijkt uit onderzoek van KPMG Sustainability in opdracht van het Ministerie van Economische Zaken, Landbouw en Innovatie.Categories: financialaudit, kpmg, operationalaudit
Graydon gaat bedrijfsratings openbaar maken
May 16th, 2012
Kredietinformatiebureau Graydon heeft een website online gezet waar bedrijven hun kredietrating en betaalgedrag openbaar kunnen maken. Graydon zorgt dat deze informatie actueel blijft. "Bedrijven gebruiken deze informatie voor hun financiële pr."Categories: deaccountant, financialaudit
